Are You Missing the Point (of Sale)?

Companies spend millions of dollars on television, radio and print ads to drive customers into the stores to buy their products. But did you know that up to 80% of purchase decisions are made at the point of sale?

Major brands are starting to pick up on this reality and realign their spending accordingly. A recent study for the Grocery Manufacturers of America showed that some brands are spending more money on point of sale, or shopper marketing, than on digital marketing. In fact, there is a whole new specialty called shopper marketing, that asserts that companies should focus first on what goes on inside the store and then work backwards from there. Large ad agencies, such as Saatchi & Saatchi and WPP are getting in the game as well. WPP just purchased Los Angeles based POS marketing company Lunchbox, whose clients include Unilever, Walmart and Kimberly-Clark.

What does all this mean for scent marketing companies? A lot! Both ambient scenting and scented packaging are highly effective point-of-sale strategies. Work on getting new business by targeting these specialized shopper marketing agencies and making your case for adding scent to the mix.

New York Grocery Chain Implements Scent in Multiple Areas

Supermarket Chain NetCost Market has launched scent marketing in its Brooklyn and Staten Island stores, and plans to install scent machines in all of its stores.

NetCost uses specific food fragrances to stimulate sales in its different departments. The meat department has the scent of smoky bacon, while the produce area smells like grapefruit or strawberry. Managers have also tested other food scents like chocolate in the candy aisle and rosemary focaccia in the bakery and have been very happy with the results.

Sales have steadily been going up of products in the scented areas. A NetCost spokeswoman said that, "Because of the scents, I think fruit sales are up probably 7 to 8 percent." Other areas, like the bakery and candy sections were added later, and sales are climbing there too.

Hungry Yet?

A new study, published in the Journal of Texture Studies, has shown that merely showing pictures of food is not sufficient to produce that mouthwatering sensation that causes people to seek food. Although animals, most notably Pavlov's dogs, will salivate at the thought or anticipation of food, researchers found that the same does not hold true for humans.

When it comes to people, a picture alone is not enough to create that craving for food. The reason, according to the scientists, is that a visual representation is not real enough to convince the brain that food is imminent.

What does this mean for marketers?

If you are promoting a restaurant, catering company, grocery store or other food-related product or service, your marketing would be much more effective if you incorporate the sense of smell. There are many different ways to do this, including scented ink, scented paper, scratch 'n sniff technology and scent strips. Contact IAG to see how joining can get you the best price on scent marketing for your food products.